Key Takeaways
- Commercial and other non-residential property is taxed on the same general transfer (stamp) duty scale as most property in each state, calculated as a percentage of the purchase price or market value, whichever is higher.
- There is no single national rate. Each state and territory sets its own thresholds and rates, reviews them periodically, and none extend first-home or owner-occupier concessions to commercial property.
- Foreign purchaser surcharges, GST on the purchase price, and whether the deal is structured as a going concern can all change the duty payable well beyond the base rate.
- Duty is due on or shortly after settlement in every state, and it is paid in cash or equity alongside the deposit, not folded into the loan amount.
Buying a $1.5 million warehouse in Queensland and buying the same-priced office in Victoria can mean two different stamp duty bills, assessed under two different pieces of legislation, with two different sets of exemptions. There is no “commercial rate” that applies Australia-wide. Each state and territory runs its own transfer duty regime, and commercial, industrial and investment property is generally taxed on the same sliding scale as any other non-residential transfer.
Working out what you will actually pay means starting with the state the property sits in, not a single formula.
How Commercial Property Stamp Duty Works
Transfer duty (still commonly called stamp duty) is charged on the dutiable value of the property, which is the higher of the purchase price or the property’s market value. Every state uses a sliding scale: as the value rises, a higher rate applies to the portion above each threshold, similar to how income tax brackets work.
A handful of features are common across most states:
No Home Buyer Concessions
First-home buyer grants, principal-place-of-residence discounts and similar concessions are built for owner-occupied housing. None of them apply to a commercial purchase, regardless of the buyer’s personal circumstances.
GST Can Sit on Top
Where the sale is subject to GST, most states calculate duty on the GST-inclusive price. A “going concern” sale of a tenanted commercial property may be GST-free under the margin or going concern provisions, which is one reason the exact sale structure matters before you sign, not after.
Foreign Purchaser Surcharges
Every mainland state applies an additional surcharge, on top of standard duty, where the purchaser is a foreign person or a foreign-controlled entity. The surcharge is a separate percentage added to the base rate and can add a substantial amount to the bill on a commercial-sized purchase.
Stamp Duty by State: Where to Get the Current Rate
Because thresholds are reviewed and adjusted over time, the safest way to quote a rate is to link directly to the state or territory’s own calculator rather than repeat a figure that may already be out of date by the time you read it. As a guide, here is how each jurisdiction currently frames its scale, with a link to the official source.
New South Wales
NSW applies a sliding scale under its transfer duty rules, published and updated by Revenue NSW. As at the current schedule, the bands run from $1.25 per $100 at the lowest end up to $5.50 per $100 on the value above roughly $1.29 million, with a base amount added at each threshold. Because these thresholds are indexed, use the Revenue NSW transfer duty rates page to confirm the exact bracket for your settlement date.
Victoria
Victoria’s State Revenue Office publishes separate current-rate pages for principal-place-of-residence and non-principal-place-of-residence transfers, the latter being the one that applies to a commercial purchase. Check the non-principal place of residence current rates page for the bracket that applies to your purchase price.
Queensland
Queensland calls it transfer duty and provides an online estimator through the Queensland Revenue Office, which is the most reliable way to get a figure for a specific purchase price. See the Queensland transfer duty estimator.
Western Australia
WA’s transfer duty is administered by the Department of Treasury and Finance (Office of State Revenue), with an online calculator on the WA Government’s own services portal. Use the WA transfer duty calculator for a current figure.
South Australia
RevenueSA publishes its stamp duty rate scale and calculators directly. Commercial and other non-residential land is assessed on the general rate scale set out on the RevenueSA rate of stamp duty page.
Australian Capital Territory
The ACT calls its duty “conveyance duty,” administered by the ACT Revenue Office, which offers an online calculator that reflects the current bracket structure. See the ACT conveyance duty calculator.
Tasmania and the Northern Territory
Tasmania’s State Revenue Office and the Northern Territory Government both publish their own current calculators, at Tasmania’s property transfer duty calculator and the NT conveyance duty calculator respectively.
Where Stamp Duty Fits in Your Settlement Costs
Duty is one of several costs that land on top of the purchase price, alongside legal fees, lender fees and adjustments for outgoings such as council rates and land tax already paid by the seller. Most states require duty to be paid at or shortly after settlement, and it is settled in cash or equity, not added to the loan. That makes it a deposit-side cost to plan for early, particularly on a larger commercial purchase where the duty bill itself can run into six figures.
This is also where finance timing matters. If duty and other settlement costs stretch your available funds, it is worth discussing the numbers with your broker before you are locked into a contract, not after.
How Loanworx Can Help
We do not provide tax or legal advice, and the exact duty payable on a specific purchase should always be confirmed with your solicitor or conveyancer and the relevant state revenue office. What we can help with is making sure your commercial finance is structured so the deposit, duty and settlement costs are accounted for from the start, rather than becoming a scramble in the final weeks before settlement.
Frequently Asked Questions
1. Is stamp duty on commercial property higher than on a home?
The base rate scale is usually the same scale used for any non-residential transfer in that state. What differs is that commercial property misses out on the concessions built for home buyers, and a foreign purchaser surcharge or GST treatment can add further cost that a standard home purchase would not attract.
2. Can stamp duty be included in the loan amount?
Generally no. Duty is a settlement cost paid alongside the deposit, not capitalised into the loan, though your broker can help you plan how much cash or equity you need available to cover it alongside your deposit and other costs.
3. Does buying through a company or trust change the duty payable?
The buying entity does not usually change the base rate, but it can affect other things, including landholder duty rules if you are acquiring an interest in an entity that owns land, rather than the land itself. This is a scenario where legal advice before signing is worth the cost.
4. Is GST charged on top of the purchase price, and does duty apply to the GST component?
Whether GST applies depends on the sale structure, including whether it qualifies as a GST-free going concern. Where GST does apply, most states calculate duty on the GST-inclusive price, which is another reason to have the contract terms reviewed before you commit.
5. Do stamp duty rates change often?
Thresholds in several states are indexed or reviewed periodically, so a bracket that applied last year may have shifted. Always check the current rate on the relevant state or territory revenue office website, or use their official calculator, rather than relying on a figure from an older article.
This article is general information only and does not take your objectives, financial situation or needs into account, and it is not tax or legal advice. Stamp duty rates, thresholds and concessions vary by state and territory, are updated from time to time, and the figures noted above may not reflect the current rate at the time you read this. Always confirm the duty payable with the relevant state or territory revenue office, or a qualified conveyancer or solicitor, before relying on any figure to make a decision.
